The BBC shared a story over the weekend about a case of an inheritance payment transfer error where a pensioner gave his solicitor an incorrect bank sort code when he was due to receive a £193,000 inheritance payout.
The incorrect payee refused to return the money after the mistake, which led to a protracted court battle to return the funds. This overall process consumed £12,000 in legal and court fees to obtain the name of the recipient, followed by a further £34,000 for an injunction to force the recipient to return the money.
Barclays initially refused to pay these fees back to the client, but reversed its decision after the story was taken to The Guardian newspaper.
What precautions could prevent this inheritance payment transfer error?
To combat such bone-chilling occurrences (which crop up more often than you would think), plans are underway to introduce a system where the operator sends an automated alert to those transferring money when a name doesn’t match an account’s details. This functionality is currently set to be put in place in the Spring of 2020.
In the meantime, when you need to provide your solicitor with your bank details you could consider the following:
- Provide a printed copy of your bank account statement with the printed details.
- Ask to double-check that the data has been inputted correctly before giving the go-ahead.
- If you’re the payer (particularly of a large sum of money) – get your bank to authorise the payment after providing them with the printed details of the payee.
What if I’m concerned about a family member making an inheritance payment transfer error?
- If you help an elderly relative with such matters, accompany them to their appointment with the relevant paperwork, or sit with them while they make their transaction.
- If you have a relative with a deteriorating medical condition, it may be worth having a talk with them about Lasting Powers of Attorney, even if it’s not required for that specific transaction (more of a precautionary measure). If you are the one with the condition, it may be worth discussing with your loved ones to see if it could put your mind at ease in the future.
Where can I read more about Lasting Powers of Attorney?
To find out more about Lasting Powers of Attorney, visit our page within the Wills and Probate section.
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